European Metals Holdings Limited (EMH) AI Stock Analysis

• Market Cap: AU$46.68M
• Dividend Yield: N/A
• Average Volume (3M): 317.26K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.53
• Revenue Growth: -100.00%
• EPS Growth: 61.59%
• Country: AU
• Employees: 28,000
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 207,444,700
• 10 Day Avg. Volume: 138,325
• 30 Day Avg. Volume: 317,260
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 42.95
• Price to Cash Flow (P/CF): -22.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

European Metals Holdings Limited's overall stock score reflects significant financial challenges, particularly in revenue and profitability. While the company's balance sheet indicates financial stability and technical indicators suggest upward price momentum, the negative valuation metrics and lack of earnings call data limit the stock's appeal. The company's primary strengths lie in its low leverage and positive price trends, but these are overshadowed by operational inefficiencies and a lack of earnings visibility.

European Metals Holdings Limited Business Overview & Revenue Model

Company Description

European Metals Holdings Limited (EMH) is a mineral exploration and development company focused on the development of the Cinovec Lithium-Tin Project in the Czech Republic. The company operates primarily within the mining sector, concentrating on the extraction and production of lithium, which is a core component in battery technology, as well as tin. EMH is committed to advancing the Cinovec project to become a significant supplier of these crucial minerals, supporting the growing demand for electric vehicles and renewable energy storage solutions.

How the Company Makes Money

European Metals Holdings Limited generates revenue primarily through the exploration, development, and potential sale of lithium and tin extracted from the Cinovec project. The company's key revenue streams include the sale of these minerals to manufacturers and industries involved in battery production and other applications. Significant partnerships and joint ventures, such as those with energy and manufacturing companies looking to secure a stable supply of lithium, play a crucial role in EMH's business model. Additionally, as the project advances towards production, EMH is likely to form strategic alliances or off-take agreements with major players in the electric vehicle and renewable energy sectors, further enhancing its revenue potential.

European Metals Holdings Limited Financial Statement Overview

Summary

European Metals Holdings Limited faces several financial challenges, with declining revenue and persistent net losses impacting profitability. The balance sheet shows financial stability with low leverage and strong equity, yet cash flow difficulties suggest operational inefficiencies. Improvement in revenue generation and cost management could enhance financial health.

Income Statement

European Metals Holdings Limited shows declining revenue over the past year, with TTM revenue at $868,741 compared to $1,102,944 the previous year, indicating a revenue decline. The company has experienced consistent net losses, with a TTM net income of -$3,355,576. Gross profit margin remains high at 100%, but EBIT and EBITDA margins are negative, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio is low, indicating minimal leverage, which is a positive sign of financial stability. Stockholders' equity has grown, reaching $36,483,241. However, the equity ratio is strong at 97.76%, showcasing a solid equity base. Return on Equity remains negative due to net losses, highlighting profitability issues.

Cash Flow

The company has negative operating cash flow and free cash flow, showing challenges in cash generation from operations. The free cash flow to net income ratio is inconsistent due to negative values. Financing activities have primarily supported cash reserves, but reliance on external financing poses a risk if not managed carefully.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
868.74K	1.10M	1.10M	1.10M	183.84K
	Gross Profit
868.74K	1.12M	1.06M	1.09M	182.49K
	EBIT
-1.86M	-4.72M	-5.43M	-2.63M	-5.15M
	EBITDA
-988.08K	-4.03M	-4.98M	-2.63M	-5.10M
	Net Income Common Stockholders
-3.36M	-5.93M	-6.80M	-3.96M	2.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.73M	8.89M	19.06M	7.88M	58.95K
	Total Assets
37.32M	39.91M	36.97M	25.92M	19.05M
	Total Debt
164.18K	40.77K	86.48K	97.89K	0.00
	Net Debt
-4.56M	-8.85M	-18.97M	-7.78M	-58.95K
	Total Liabilities
835.20K	6.59M	1.17M	637.54K	979.21K
	Stockholders Equity
36.48M	33.33M	35.80M	25.28M	18.07M
Cash Flow		Free Cash Flow
-3.43M	-1.84M	-2.58M	-2.29M	-2.19M
	Operating Cash Flow
-3.42M	-1.84M	-2.58M	-2.29M	-1.86M
	Investing Cash Flow
-11.40M	-8.42M	0.00	0.00	-331.37K
	Financing Cash Flow
10.94M	-48.80K	13.76M	10.11M	1.88M

European Metals Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:EMH, the sentiment is Positive. The current price of 0.22 is below the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.18, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:EMH.

European Metals Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYA	52 Neutral	$219.32M	―	-17.81%	―	87.89%	-344.44%
EMH	50 Neutral	AU$46.68M	―	-7.08%	―	-100.00%	61.59%
Sector *	49 Neutral	$1.96B	-1.54	-21.88%	3.78%	0.55%	-26.98%
MIN	48 Neutral	AU$3.55B	50.78	-33.95%	4.54%	2.22%	-411.10%
PLS	46 Neutral	$4.78B	23.42	-1.04%	―	-65.07%	-102.37%

European Metals Holdings Limited Corporate Events

European Metals Secures EU Grant for Strategic Cinovec Lithium Project

European Metals Holdings Limited announced the approval of a USD 36 million grant from the EU’s Just Transition Fund for its Cinovec Project, conditional upon environmental assessments. The project, designated as a Strategic Project under the EU Critical Raw Materials Act, is crucial for Europe’s supply of critical raw materials and is expected to benefit from accelerated approval processes and funding access, enhancing its development and market stability.

European Metals Director Increases Shareholding

European Metals Holdings Limited announced a change in the director’s interest, with Lincoln Palmer Bloomfield Jr. acquiring an additional 119,630 ordinary shares through on-market trades, increasing his total holdings to 644,630 shares. This change reflects a significant increase in the director’s stake in the company, potentially indicating confidence in the company’s future prospects and stability, which may positively impact stakeholder perceptions.

European Metals Holdings Announces Cessation of Securities

European Metals Holdings Limited announced the cessation of 7,400,000 performance rights that expired on March 2, 2025, without being exercised or converted. This cessation of securities may impact the company’s capital structure and could have implications for its financial strategies and stakeholder interests.